Debitoor Dictionary

Accounting terms explained in a simple way

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Remittance advice - What is a remittance advice?

Definition: A remittance advice is a note sent from a customer to their supplier, informing the supplier that they have paid their invoice. The advice may contain elements such as a text note, the invoice number and the invoice amount, among others.

Remittance advices are not required, but they are seen as a courtesy since they make it easier for the supplier to match invoices with payments.

Remittance advices could be compared to a receipt from a cash register, in that they serve as a record of received payment.

Forms of Remittance advices

At it's simplest, a remittance advice can be a letter or a note that outlines the invoice number and the payment amount sent or enclosed (such as when attached to a cheque).

However, many companys design their invoices with a removable portion that the customer can return along with the payment.

Modern systems may also scan paper remittance advices into an online system where data entry can then take place. Modern remittance advices can include dozens, or hundreds of invoice numbers, as well as other detailed information.